How Artificial Intelligence is transforming business models across industries is a question that is fast becoming a normal question of conversation. We are quickly moving to a world where artificial intelligence will play a larger role than ever before in how businesses are run. It is very evident that a lot of reputed institutes have started offering artificial intelligence courses in-order to up-skill or help in career shift. Just as computers and software engineers are quickly modifying existing computer programming to better serve the needs of clients, so too can business model developers and technologists fine tune business models for the digital age. This change is already happening, but we may not see the impact of this until the late stages of the next decade.
Currently, however, we are seeing obvious results from this transformation. Increasing digital data has created a new economic model that businesses across industries are quickly adapting to. Today’s digital data allows businesses to not only collect more information about their customers, but also allows them to leverage that information to make better decisions about their businesses. Consider the following three business models as a snapshot of how artificial intelligence is transforming business models across industries:
Retail businesses across nations are currently experiencing an explosion in sales thanks to a new element called e-commerce. Digital data is revolutionizing the way that stores sell products to consumers. Instead of displaying product catalogs on the store windows, sales clerks simply show their digital images to customers online via an internet website. The company then tracks all of this data automatically through a central server and processes it accordingly. With this powerful new business model, sales clerks are no longer required to physically collect product catalogs-they simply take care of the work once they’re done with a purchase.
Software developers have developed new business models that take advantage of this revolution in business. Rather than designing websites for a business, developers have instead concentrated their efforts into building programs that drive their websites to specific web pages based on contextual links. For instance, a restaurant in New York City can open its website to show cooking tips or recipes whenever someone searches for Chinese food items. This allows businesses to create a unique experience for their consumers, which increases their customer base and sales dramatically. With this type of e-commerce, sales clerks no longer need to worry about coming up with a specific plan for each individual consumer-the system knows exactly what consumers are looking for and compiles search results for the business.
Another example of how artificial intelligence is transforming business is at the international level. Large international companies such as Wal-mart and Google are beginning to use artificial intelligence to analyze shopping trends and behaviors to determine the best time to place an order to replenish the supply, so that their businesses operate at peak efficiency throughout the day. In fact, some of these systems allow customers to post their opinions on how helpful the company is-customers can leave reviews for different stores so that other people are aware of the positive or negative experiences they’ve had while shopping.
Many businesses are already taking advantage of this technology at the executive level. By using complex computer programs to analyze data, business leaders are able to make quick decisions about which employees to keep and which to let go. This not only makes it easier to boost overall employee morale, but it can also result in higher pay because a business owner can identify the weak areas before laying off any key employees. Additionally, by laying off weak employees, a business owner will free up money to expand. A successful company will have enough money left over each year to reinvest in new products or services.
How artificial intelligence is transforming business is also being seen at the government level. The CIA is using artificial intelligence to assess the current threat posed by international terrorists. Experts at the CIA have even developed programs that allow them to predict how terrorist groups may change their behavior in the future. This ability to pre-empt attacks gives U.S. intelligence analysts a much better chance of catching their enemies off guard.
In the business world, artificial intelligence is transforming business faster than ever imagined. In years past, if you wanted to build a new product, you would start with a brilliant idea for the product itself, process design, marketing research, and manufacturing. However, now you would also need software developers, computer security experts, and other professionals to help you come up with the right business plan, the right business information, and the right technology. Thanks to artificial intelligence, we are moving away from the days when everything needed to be created by humans.